TOKYO, September 23. /TASS/. Japanese corporation Toyota officially announced on Friday that it has decided to end vehicle production at its plant in St. Petersburg. In a statement on its website the Japanese automaker offered assistance to its Russian employees in re-employment, retraining, and expressed readiness to provide them with financial assistance.
According to the statement, over the last six months the company has been closely monitoring the situation and evaluating the future sustainability of its business in Russia.
"During this period, we have fully retained our workforce and ensured our facility was ready to re-start production if the circumstances allowed. However, after six months, we have not been able to resume normal activities and see no indication that we can re-start in the future," the company said.
"The decision to cease production of Toyota vehicles in Russia did not come easy to us... We want to thank our employees for their hard work and loyalty. In appreciation for their valuable contributions, we will offer them assistance in re-employment, re-training and help with their general well-being, including financial support beyond what we are legally obliged to provide," the company added.
The company also determined that its operations in Moscow "need to be optimized and restructured with the clear objective of retaining an effective organization to continue supporting the retail network and providing ongoing service to existing Toyota and Lexus customers in Russia."
Earlier on Friday, a spokesperson at Russia’s Industry and Trade Ministry told TASS that Toyota is to close its car assembly plant in St. Petersburg. The company will fulfill all obligations to employees and provide compensatory payments, the official noted.
"Toyota Motor Company is closing the assembly site in St. Petersburg. At the same time, it will ensure the fulfillment of all social obligations to the team, as well as significant additional compensation. In addition, the company will retain after-sales service for Toyota and Lexus vehicles and support for the dealer network," the ministry said.
The Industry and Trade Ministry together with the government of St. Petersburg, is working on possible scenarios for the development of this production site.
In March, Toyota suspended the operation of its plant in St. Petersburg due to disruptions in the supply chain. The Toyota Motor plant in St. Petersburg was opened in 2007.